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s2008m [1.1K]
3 years ago
15

Completed Per Day

Business
1 answer:
Ratling [72]3 years ago
4 0

Answer:

The correct option is A, Samantha weed and Adam will rake because these are the goods each has a comparative advantage in.

Explanation:

The opportunity formula comes handy in this case, which is given below:

opportunity cost formula=what one sacrifices/what one gains

If Samantha were to weed flower beds, opportunity cost is computed thus:

Opportunity cost of Samantha weeding flower beds=8/4= 2 bags of leaves raked

The opportunity of Adam weeding flower beds=25/5 =5 bags of leaves raked.

In a nutshell ,if Samantha weeds flowers they would lose 2 bags of leaves raked while if Adam were to do so same, they would lose 5 bags of leaves raked, conclusively Samantha should weed flower beds since she has lower opportunity, higher comparative advantage

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g 3) You are interested in purchasing an apartment complex for $2,000,000 that has Net Operating Income (NOI) of $120,000 and is
Paraphin [41]

Answer:

the cap rate is 6%

Explanation:

The computation of the cap rate is as follows:

= Net operating Income ÷ Current market value of property

= $120,000 ÷  $2,000,000

= .06

=  6%

Hence, the cap rate is 6%

We simply divided the net operating income from the Current market value of property so that the cap rate could come

4 0
2 years ago
What happens if you lose the money you invested in your stock?
saveliy_v [14]
If that happen, other investors that bet for the opposite cause of your investment would be the one that gained that money, and you will still able to keep that stocks to collect dividend as long as you don't sell it.
(this circumtances won't happen if the reason you lost the money is the firm going into bankruptcy)
7 0
3 years ago
6. In 2008, the exchange rate between the US dollar and New Zealand dollar was NZ$1.71/$; in 2009, the exchange rate between the
Naddika [18.5K]

Answer:

No, a currency carry trade with positive profit can not be conducted.

Explanation:

The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.

However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.

With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.

For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.

In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.

6 0
3 years ago
Which of the following is the purpose of requiring banks to keep a specific percentage of their deposits on hand in the vault? A
love history [14]

Answer:

A. To enable the government to calculate the bank's tax burden more easily

Explanation:

hope this helps

8 0
3 years ago
Read 2 more answers
On January 1, year 8, Paul Co.’s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected ben
Rashid [163]

Answer:

$917,750

Explanation:

The beginning projected benefit obligation of $875,000

Add: Increased by interest at 9% or $78,750

Add Service ervice cost of $24,000

Total $977,780

Less distributions to employees $60,000

Balance $917,750

Therefore Assuming that pension expense is $80,000, what will be the projected benefit obligation at December 31, year 8 is

$917,750

7 0
3 years ago
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